Gold Can’t Catch a Break: Rising Yields, Oil Shock and No Iran Deal Put Bullion Under Pressure
TLDR
- Gold edged up 0.1% to $4,339.20 after its biggest single-day drop in nearly a month
- Rising Treasury yields and higher oil prices are pressuring gold prices
- The Strait of Hormuz standoff is keeping energy markets on edge
- Fed minutes due Wednesday could offer clues on the interest rate path
- Traders now price in a 67% chance the Fed will hold rates steady
Gold bounced slightly on Wednesday after suffering its steepest one-day fall in nearly a month. Prices rose 0.1% to $4,339.20 an ounce in early trading, while gold futures slipped 0.6% to $4,392.42.
The modest recovery came as the U.S. dollar softened slightly and Treasury yields pulled back. Silver fell 1.0% to $62.69 an ounce, and platinum edged down to $1,716.02.
Yields and Oil Add Pressure
Gold has struggled to hold gains as bond yields rise. The 30-year U.S. Treasury yield hit its highest point in nearly two decades on Tuesday, while 10-year yields stayed near their highest levels since early 2025.
When bond yields rise, gold becomes less attractive. Bonds start offering better returns, while gold pays no interest. That encourages investors to move money out of bullion and into fixed-income assets.
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